Agnico Eagle Mines (TSX: AEM; NYSE: AEM), Canada’s largest miner by market value, is investing $8.2 million to advance First Nordic Metals‘s (TSX-V: FNM) Oijärvi gold project that Agnico used to own, in Finland.
The transaction, expected to close by July 22, is to raise Agnico’s ownership in First Nordic to 13.25% from 0.75%, First Nordic, which changed its name in March from Barsele Minerals, said on Tuesday. It’s buying about 28 million common shares at 29.25¢ per share.
“Oijärvi has all the key attributes First Nordic looks for in a high-quality project – high grades, significant growth potential and a great location,” president and CEO Taj Singh said in a release. “We are thrilled to welcome Agnico Eagle and look forward to having them as a significant shareholder.”
Kylmäkangas
First Nordic is finalizing its roughly $6.6 million acquisition of Oijärvi, which it announced in December.
The project includes the Kylmäkangas gold-silver underground deposit with an indicated resource of 1 million tonnes grading 4.6 grams gold-equivalent per tonne for 159,000 oz. of gold-equivalent and an inferred resource of 1.6 million tonnes at 2.9 grams gold for 152,000 oz. of gold equivalent, according to a 2022 report.
Agnico and First Nordic are to establish an investor rights agreement granting Agnico the option to participate in future equity financings and potentially nominate board members. The junior bought Oijärvi from Agnico in 2021.
First Nordic’s main asset, the Barsele gold project in Sweden, operates as a joint venture with Agnico as the Canadian major expands its European portfolio.
Shares in First Nordic closed unchanged at 39¢ apiece on Tuesday in Toronto, valuing the company at $74.9 million. It’s traded in a 52-week range of 10¢ to 41¢.
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